QBiz: Tata Motors-Volkswagen Talks; 300 Cr Sales For Pulse Candy

A roundup of all the important business news making the headlines.

(Photo: The Quint)

1. Tata Motors Chief Confirms Talks With Volkswagen

Tata Motors on Tuesday said it is in talks with the world's largest automaker Volkswagen for a possible partnership. The company is exploring various opportunities, including partnership in its new advanced modular platform (AMP) development, possibilities of a joint venture or a contract manufacturing with the German auto major, in its bid to scale up.

"I can only confirm that we are in talks but nothing to be announced yet," Tata Motors Chief Executive Officer and Managing Director Guenter Butschek told PTI. When asked how far the talks have progressed, he said: “We are in the midst of discussions. We will let you know in good time.”

Explaining the rationale behind such a move, Butschek said although the company has set sights on becoming among the top three passenger vehicle-makers in India by 2019, it might not be enough to get the scale-up effects.

(Source: BloombergQuint)

2. Anil Ambani's Reliance Capital Sells Paytm Stake to Alibaba; Makes Rs 275 crore from Rs 10 crore

Anil Ambani's Reliance Capital has sold its stake in the country's leading mobile wallet Paytm for Rs 275 crore to Chinese e-commerce giant Alibaba group.

The financial services arm of Reliance Group had invested Rs 10 crore for this stake in Paytm. Now, the new deal gives a valuation of over $4 billion to the e-wallet firm, which has been backed by Alibaba group as a strategic investor.

Sources said that Reliance Capital has retained a stake in Paytm e-Commerce, which it had got free of cost by virtue of the investment in the parent firm.

(Source: Business Today)

Read The Quint’s report here.

3. Re 1 Candy Pulse Hits Rs 300 Crore Sales in 2 years, MNCs Feel the Heat

Pulse, a raw mango flavoured tangy candy was launched by DS Group, makers of Rajanigandha pan masala and Catch bottled water, in mid-2015. Last month, the Re 1 candy clocked Rs 300 crore in sales, beating MNC blue-chip munchie brands such as Oreo (Rs 283 crore in sales, launched in 2011) and Mars bars (Rs 270 crore in sales, launched in 2011).

The sweet candy category is estimated at Rs 6,600 crore (hard boiled candies, mints and jellies), and is growing at 12-14% year-on-year.

Pulse looks like a sweet success compared to other MNC brands as well. Coca-Cola’s much advertised Coke Zero, launched in late 2014, has a sales figure of Rs 120 crore. Pulse’s brisk sales growth is more impressive considering the stiff competition in India.

(Source: Economic Times)

4. Draft Audit Finds Reliance Jio Underreporting Revenue by Rs 64 Crore

Reliance Jio Infocomm allegedly underreported its revenue by Rs 63.77 crore for three fiscal years to March 2015 by not including realised foreign exchange gains, leading to lesser licence fee payment to the government, a draft audit report has said.

According to the draft audit, Jio had “realised foreign exchange gain amounting to Rs 63.77 crore” during fiscal years 2012-13 to 2014-15 as per annual financial statements and revenue reconciliation statements the company furnished along with annual revenue statements.

The forex gains were Rs 1.29 crore in FY13, Rs 41.67 crore in FY14 and Rs 20.81 crore in FY15. “However, this gain was not included in the AGR (adjusted gross revenue) for the purpose of revenue share, which resulted in short payment of licence fee,” the draft report said.

The five-page report, prepared by director general of audit for post and telecommunications, has been sent to the Mukesh Ambani-owned telco and the department of telecom (DoT) for their responses.

(Source: Economic Times)

5. D-Mart Raises Rs 561 Crore from Anchor Investors at Upper End of IPO Price Band

Avenue Supermarts, which runs the D-Mart chain of food and grocery supermarkets, on Tuesday said that it has raised Rs 561 crore by selling shares to investors as part of the so-called anchor book allocation, a day ahead of its initial public offering (IPO).

Shares were allotted to anchor investors at Rs 299 apiece, the upper end of the IPO price band of Rs 295-299 per share. The issue, worth Rs 1,870 crore, will open on 8 March and close on 10 March. The company is divesting 10% of its total equity shares.

The anchor book is that portion of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest.

(Source: Livemint)

6. Music Broadcast IPO Oversubscribed on Second Day

The initial public offering of Music Broadcast Ltd, a Jagran group firm that runs Radio City FM channel, was oversubscribed till afternoon trade on the second day of the offer on Tuesday.

The IPO received bids for 1,05,34,230 shares as against the total issue size of 1,04,80,784, an oversubscription of 1.01 times, data available with the NSE till 12:30 hours showed.

Music Broadcast Ltd last week raised over Rs 146 crore by allotting shares to anchor investors. The initial share sale plan will close on Tuesday.

(Source: Business Standard)

7. Oppo Bags Indian Cricket Team Sponsorship At Five Times Star India’s Fee

Mobile manufacturing company OPPO will replace broadcasting giants Star India as the official sponsor of the Indian cricket team from 1 April, winning the bid with a mind-boggling sum of Rs 1,079 crore.

“Oppo put in a record bid of Rs 1,079 crore for five years. This is almost five times the previous bid (Star India’s). The second highest bid was from Vivo which was 768 crore,” BCCI’s Chief Executive Officer Rahul Johri said at a press conference.

"Both the bids far exceeded the minimum reserve price that was set by BCCI at Rs 538 crore," said Johri. There were nine bidders in the fray.

"So in simple terms, Rs 4.17 crore per bilateral game and 1.51 crore per ICC game. To give a perspective, the previous highest was 1.71 crore per BCCI game, that has gone up to Rs 4.17 crore (per game)," he said.

(Source: BloombergQuint)

Read The Quint’s report here.

8. Brookfield Asset Management in Talks with Jaiprakash Power's Power Assets

Brookfield Asset Management, the world’s second biggest alternative assets manager, is in talks with lenders of debt-laden Jaiprakash Power Ventures to acquire the firm’s three power plants, two people with direct knowledge of the development said.

The discussions are in initial stages and there is no certainty that a transaction will take place. A deal, if it happens, could close at an equity value of Rs 4,500-5,000 crore, one of the two people said.

The transaction will mark Brookfield’s first investment in India’s power sector. The asset manager has already committed about $4.6 billion in the country in toll roads and telecom towers.

(Source: Economic Times)

9. Piramal Realty to Invest Rs 1,800 Crore in New Suburban Mumbai Project

Mumbai-based Piramal Realty, the real estate arm of Piramal Group, will invest around Rs 1,800 crore in its new residential project in suburban Mumbai.

The company has pre-launched its eight-acre project Piramal Revanta in Mulund and will sell homes at around Rs 12,000 per sq. ft. The project has one, two and three bedroom homes of 450-1,200 sq. ft.

The investment includes land cost, project development and execution costs.

(Source: Livemint)